2. Compensation and Motivation
Compensation is a wide concept and it is defined as the total
package in cash or any kind that is paid by an enterprise to an
employee in return to the work done by the latter for a certain
period of time. It may include:
1-Salaries or wages.
6-Vehicles or others that are
provided for the personal use
of the employee.
7-Paid time off and various
other types of compensation.
Motivation is creating the interest in doing a certain Job
and this may be through:
1-Attention to each individual and
3- A defined career path and growth.
4-Training and development
5-Fair pay and a good job match.
6-Encouraging work/life balance.
7-The Use of team rewards.
8-Rewarding high performance .
3. Factors affecting compensation and compensation
effect on Motivation
Internal factors(direct) that affect
1-The ability of the organization
seniority and potential.
4-Position of the company in the
6-Good job analysis and job
7-Productivity of workers.
External(indirect) factors that
1-Laws and regulation.
5-Demand and supply of labor.
7-Cost of living.
The increase in
compensation will lead to
increased motivation but it
is to be noted that
motivation doesn't t
depend solely on
Factors affecting the
level of motivation:
3- Work itself
Presence o f these
Factors that will not
increase motivation but
there absence decreases
3-Relationship with Boss .
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http://www.managementstudyguide.com/compensation-management.htm [Accessed 01/12/2015]
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http://www.lawyerment.com/library/articles/Self_Improvement/Motivation/317.htm [Accessed 01/12/2015]
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Available from : http://www.wikihow.com/Motivate-Your-Employees [Accessed 01/12/2015]
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compensation.htm [Accessed 01/12/2015]
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http://accountlearning.blogspot.com.eg/2013/03/factors-affecting-compensation-system.html [Accessed 01/12/2015]
8- ARAB BRITISH ACADEMY FOR HIGHER EDUCATION (n.d.) Herzberg's Motivation-Hygiene Theory (Two Factor Theory) [Online] Abahe.Co.Uk Available
from : http://www.abahe.co.uk/Free-En-Resources/Theories-of-Management/Herzberg-Motivation-Hygiene-Theory.pdf [Accessed 01/12/2015]